Post of the Day: Multiple Time Frame Analysis

Student’s Question:

How can I use Multiple Time Frame Analysis in my trading? I have heard of it but I am not sure that I understand it…thanks.

Power Course Instructor’s Response:

Good question about an important topic…

Multiple Time Frame Analysis (MTFA) is an excellent method of analysis whereby a trader takes a look at a currency pair in three different time frames. By so doing, it becomes more clear as to where a pair is in its overall trading cycle.

Below is a link for the Daily FX Instructor’s Trading Tips on the DailyFX.com site that will go into more detail…
http://forexforums.dailyfx.com/dailyfx-course-instructor-trading-tips/23989-post-day-4.html

Hi,

I’ve read many articles on MTFA, but all seem to presume that the analysis will be done for Market Orders.
Please correct me if I’m wrong in any of this, but it seems that for all Market entries and all manual exits in any type of trade, MTFA can be applied.

But I do not recall any article addressing these critical questions?

  1. Can MTFA be applied to Buy Stop and Sell Stop Order entries? If so, how? Price has not yet reached the entry levels.
  2. Can it be applied to Trailing Stops in any type of trade. If so, how? Here too, price has not yet reached the entry levels.

Thank you,
Norm